This application relates generally to information security. More specifically, this application relates to methods and systems for electromagnetic initiation of secure transactions.
In recent years, a number of proposals have been put forth to expand the flexibility with which consumers may provide access to accounts when engaging in financial transactions. Currently, there are a number of different types of transactions that permit such access, such as debit transactions, credit transactions, and stored-value transactions. For example, debit transactions may provide information during the transaction regarding a demand-deposit, checking, or savings account so that a debit of funds may be applied directly to the account substantially contemporaneously with the transaction. In the case of a credit transaction, account information provided during the transaction may define a credit account against which the customer may charge funds up to a predefined credit limit. Similarly, account information provided during a stored-value transaction identifies a stored-value account against which the customer is authorized to debit funds.
Because of its sensitive nature, a major concern when handling financial-account information during such transactions is the security of the information. Currently, the most common way to ensure that the information is treated securely is to provide the information on a magnetic stripe that is affixed to a plastic card entrusted to the control of the customer. The magnetic-stripe image on the card is read during a transaction with a magnetic-stripe reader and transmitted for approval by an entity responsible for the identified financial account. In some instances, a personal identification number may be required to support the transaction, but not in other instances.
Many proposals to allow radio-frequency (“rf”) initiation of transactions do nothing more than suggest loading the magnetic-stripe image onto an rf chip. These suggestions fail to account for additional security and authentication schemes that would add extra processing to the authorization system or add extra complexity to the chip, but which would be needed to ensure the security of the financial-account information. There is accordingly, a general need in the art for methods and systems that provide for electromagnetic initiation of transactions that maintain the security of the information.